Dominican Republic launches cash tender offer for 9¾% bonds due 2026

By Wendy Van Sickle

Columbus, Ohio, Sept. 5 – The Dominican Republic has opened a cash tender offer for its outstanding RD$68,026,000,000 9¾% bonds due 2026 (Cusips: P3579ECD7, 25714PEA2), according to a press release on Tuesday.

The republic is offering to purchase the Regulation S and Rule 144A bonds at par of RD$1,020 plus accrued and unpaid interest up to, but excluding, the settlement date.

The consideration will be payable in dollars by converting the applicable Dominican peso amounts to dollars on the representative market rate at the expiration time.

Bondholders tendering their bonds may receive priority allocation for the new bonds. Bondholders should obtain an allocation code from the dealer managers. Bonds validly tendered may be validly withdrawn at any time prior to the offer’s expiration.

A minimum of RD$8 million of bonds must be tendered to participate in the offer. Tender amounts may be increased in multiples of RD$50,000 up to a maximum amount of RD$999.95 million.

Tenders in excess of the maximum amount risk having their tenders automatically rejected in whole. Bondholders wishing to tender amounts in excess of the maximum should submit two or more instructions, each within the aforementioned range.

If a bondholder tenders less than all of their existing bonds, they must continue to hold a minimum of RD$8 million.

There are no guaranteed delivery provisions as part of the offer.

The offer expires at 8 a.m. ET on Sept. 12.

Tenders are subject to proration.

The republic will announce results around 9 a.m. ET on Sept. 12, which will include the applicable exchange rate. Around 5 p.m. ET on the same date, the republic will further announce the maximum purchase price, tendered aggregate purchase price, aggregate principal amount tendered and accepted for purchase and any proration.

The settlement date is Sept. 15.

The offer is conditioned upon the closing of one or more new Dominican peso-denominated, New York law-governed debt securities. Tendering holders who wish to subscribe for the new notes should include their priority allocation code when subscribing.

The dealer managers for the offer are Citigroup Global Markets Inc. (212 723-6106, 800 558-3745, ny.liabilitymanagement@citi.com) and J.P. Morgan Securities LLC (212 834-7279, 866 846-2874).

Global Bondholder Services Corp. is the tender and information agent (212 430-3774, 855 654-2014, contact@gbsc-usa.com, https://www.gbsc-usa.com/dominican, Fax: 212 430-3775/3779).

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